- The Big Lots discount chain planned to open three stores last year, but now it intends to close 35-40 branches across the country.
- The American retail chain reported revenues for the first quarter, which turned out to be lower than analysts' expectations.
- Big Lots is a well-known discount chain and a Fortune 500 company. Last November, it saved itself by cooperating with Uber Eats.
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The trading giant declares bankruptcy after 70 years. It will close stores by July 14
Big Lots – sales decline and net loss
The Big Lots discount store chain, after liquidating 52 locations in 2023, plans to close 35-40 retail outlets by the end of 2024, although last year it planned to open three new ones. In a 280-page document, the discounter noted the company's "inability to continue as a going concern" due to customers refraining from shopping due to inflation.
According to the New York Post, the retailer has been loss-making since 2022 and is currently at risk of bankruptcy. The Columbus-based company now operates 1,389 stores in 48 U.S. states, up from 1,427 locations in the first quarter of last year.
The retail chain reported revenues for the first quarter, which turned out to be lower than analysts' expectations. Big Lots recorded a net loss of $205 million. for the first quarter of fiscal year 2024, which ended on May 4. Net sales amounted to USD 1 billion, which means a decrease of 10.2%, or USD 114.5 million, compared to the same period last year.
The seller also incurred debts of USD 72.2 million. in the period between the first quarter of 2023 and the first quarter of 2024, as a result of which the total debt reached USD 573.8 million.
According to a letter filed with the Securities and Exchange Commission (SEC), the discount store chain expects its sales in the second quarter of this year to continue to decline compared to the same period last year.
Empty shelves of the Big Lots store as panicked customers bought goods during the coronavirus pandemic (photo: Shutterstock / Alex Millauer)
A well-known discount chain and a Fortune 500 company
Big Lots is a well-known discount chain and a Fortune 500 company. In the first quarter report, President and CEO Bruce Thorn cited high inflation that has adversely impacted consumer purchasing power, as well as "continued reduction in consumer spending by core customers."
Last November, the company saved itself by cooperating with Uber Eats, trying to develop its struggling business. Thanks to this cooperation, 1,200 Big Lots outlets began selling a variety of goods on the Uber platform, including groceries, pet care products and Christmas decorations.
– Although we made significant progress in improving our business operations in the first quarter, we failed to achieve sales targets primarily due to continued reduction in consumer spending by our core customers, particularly in high-priced, non-essential goods. We focus on ongoing management. We are taking actions to achieve an increase in comparable sales in the second half of the year and in 2025 and to maintain improvement in the gross margin indicator year on year – says Bruce Thorn, president and CEO of Big Lots, quoted by al.com.
Big Lots Stores is a chain of discount stores operating since 1967, based in Columbus, Ohio, United States. It deals with retail and online sales of groceries, household products, personal care, furniture, garden equipment, seasonal products and others. The corporate website states that the company employs 35,000. employees and co-workers.
This is another large network that declares bankruptcy – informs desertsun.com. Others include Dollar Tree, 99 Cents Only Stores, Red Lobster, Rite Aid and Bed Bath & Beyond.
